Company Registration

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

One DSC & up to two DINs

The directors must be registered with the MCA

Company Name Reservation

We will then help you pick a unique name

MoA & AoA

We will draft your company's constitution

SPICe i.e. INC-32 Approval

Your company is now incorporated

Company PAN & TAN

We will send in a request to the NSDL

Request a call back

What is Company Registration?

Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership. At Your CA, we are continuously available to help you understand how to register a private limited company. All such businesses must have at least two directors and shareholders on inception.

6 Essential Facts on Company Registration

What if I am a single founder?

A private limited company is an entity with two directors and two shareholders at the minimum. If you are a single shareholder, you can also bring in your mother, father or any other relative to be part of the limited company with just one single share.

Why do startups prefer private limited companies?

Simple. Startups set-up private limited companies so that they can raise venture capital funding and offer their best employees stock options. Without funding and stock options, it's almost impossible to build and scale a large business. Banks and other lenders would also much rather lend to private limited companies, as compared to sole proprietors.

What is the procedure to register one?

Initially, we help you get a digital signature certificate (also known as DSC), which is nothing but an e-signature to help you complete the registration online. It usually takes two days to get the DSC from the time you submit the documents. Next, we apply for the Director Identification Number (also called a DIN). This typically takes one day. The third phase involves selection of a name for your company. Now, do remember that your company name need not be your brand name. For example, Naukri.com has been incorporated as InfoEdge Technologies. Once done, we will prepare the Memorandum and Articles of Association and apply for the Certificate of Incorporation.

How many shareholders can there be in a private limited company?

A private limited company must have at least two directors and shareholders, and can have a maximum of 15 directors and 50 shareholders.

How much do you need to invest?

Good news. You don't need to invest any money upfront. Most entrepreneurs do bring computers and other necessities at the very beginning. These can be the assets of the company. Private limited companies in India do not need to have any paid-up capital (that is, they do not need to introduce any money into the company).

What regulatory requirements are placed on private limited company?

As private limited companies are not traded publicly, regulatory requirements placed on them are fewer than on public companies. For example, they need not disclose their books of accounts. Because of this advantage, they need only worry about the long term rather than face the music from their shareholders in case their results in a particular quarter are poor.

Advantages of a Private Limited Company

Limited Liability

Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors' personal property would be safe.

Easy Debt Access

A private limited company has more options for taking on debt than LLPs. Not only are bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always available to it.

Investment-ready

Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds are unlikely to invest in any other structure. This is because LLPs would require them to become partners in the business, while an OPC can have only one shareholder. This feature also gives you the ability to hire top talent you may not be able to afford by merely paying a salary.

Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence, too.

Company Registration Process

5 WORKING DAYS

One director must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online.

7 WORKING DAYS

As soon as we apply for the DSC, we will ask you to pick a name for your company, and send us some scanned documents regarding it and its directors. These will be used to file SPICe i.e. INC-32 and the Memorandum of Association (MoA) and Articles of Association (AoA). The Certificate of Incorporation will be approved at the end of this process.

2 WORKING DAYS

Every company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. The PAN and TAN will be couriered to your registered office address in 21 working days.

FAQs on Private Limited Company

1. Do I need to be physically present during this process?

No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.

2. How much time is needed for setting up a private limited company in India?

If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.

3. What are the rules for picking a name for a private limited company?

The Registrar of Companies (RoC) across India expect applicant to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.Unique Component: In Flipkart Internet Private Limited, Flipkart is the unique component. Now, once taken, the name Flipkart will not be given to any other business within the suffix Internet or even related categories (E-commerce and Online Solutions, for example). But there is some subjectivity, too. Some RoCs may not even approve the name Flipkart Chemicals Private Limited, reasoning that the e-commerce brand Flipkart is too well-known. Similar sounding names would also be rejected (so no Flipkart).Blacklist: Abbreviations, adjectives and generic words are rejected. So BBC or XYZ would be rejected, as would Good Quality Biscuits. The words bank, exchange and stock exchange, unless approved by RBI or SEBI, would also be rejected.No Common Trademark: There should not be a registered trademark by the same name on the IP India website. If there is one, the name can only be approved if you are able to get a No-Objection Certificate from its owner authorising you to use it.Descriptive Component: In Biocon Research Private Limited, the word 'Research' describes the business the company is into. You cannot have 'Research' in your name if you're, say, in the logistics or restaurant business.

4. What documents are required to complete the process?

All directors must provide identity and address proof, as well as a copy of the PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises.

5. What is a DSC?

The DSC is an instrument issued by certifying authorities (TCS and n-Code are two of them) by which you can sign electronic documents. As all documents needed are electronic, partners need a DSC.

6. Does a private limited company have continuous existence?

Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.

7. How much does it cost to run a private limited company?

The cost of running a private limited company can be divided into four categories: cost of setting a private limited company, cost of accounting and auditing, cost of compliance and miscellaneous expenses. At the very minimum, you can expect to spend Rs. 40,000 on all of these.

8. Is it necessary to have a company's books audited?

Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.

9. What are articles of association and memorandum of association?

These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.

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YOUR CA: INDIA'S LARGEST ONLINE LEGAL SERVICES FACILITATOR

We have been particularly instrumental in ensuring startups are fully compliant with India's legal system. Over the years, the depth of our offerings, affordable prices and customer satisfaction has made us ONE OF THE LEADING online facilitator of legal COMPLIANCES services in India.

STARTING A BUSINESS

Many founders are confused about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship. Each of these has very specific advantages and disadvantages. There is no one type for all businesses. A private limited company registration, for example, would be a good fit for any venture that will look for funding at a later stage. YOU CAN CONTACT US AND We assure you of great service at a reasonable price.

INELLECTUAL PROPERTY

In modern business, there is no other asset as valuable as intellectual property, and yet so many startups end up neglecting it. But this is surely not advisable, as trademarks, copyrights and patents ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. We are well equipped to PROTECT all your IP requirements.

STATUTORY DOCUMENTATION

The worst way to approach business is to just get into new partnerships and arenas without examining consequences. By getting a lawyer to draft contracts or agreements with new vendors, employees and investors, you're ensuring that you have all the RISK covered. We can deliver complex documents, from shareholders' agreements and founders' agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days' time.
MANDATORY COMPLIANCES
It's not enough to have started a private limited company or LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs and Income Tax Act once you do. You need to inform REGISTRAR of every relevant change you make, whether it is adding a director, removing a partner or increasing authorised share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. WE PROVIDE all these services completely online.